Shares of Bank of Baroda climbed over 4 per cent in intra-day trade on the Bombay Stock Exchange on Friday as brokerage firms remained bullish on the stock after the state-run lender turned profitable in June quarter.
Most of the brokerages have recommended buy rating on the stock, albeit slashed the price target, citing concerns over rising costs and disappointing asset quality. This was the banker's first earnings announcement after it merged Dena Bank and Vijaya Bank with itself.
Global rating agency CLSA has recommended a buy call on the stock, but it cut price target to Rs 135 from Rs 150 per share. Jefferies has also issued a buy call on the stock, but slashed price target to Rs 130 from Rs 150 per share.
Reacting to Q1 earnings, Bank of Baroda share price gained as much as 4.29 per cent to hit an intra-day high of Rs 114.25, its highest intra-day percentage gain in over three weeks. The scrip opened higher at Rs 111.10 against previous close level of Rs 109.55. Paring some of early gains, the stock closed 2.74 per cent higher at Rs 112.55.
The stock saw spurt in volume trade with 15.79 lakh shares traded on the counter as against the average volumes of 11.67 shares in the past two-weeks on the BSE.
In a similar trend, Bank of Baroda shares rose 2.56 per cent to close at Rs 112.35 apiece on the National Stock Exchange. The stock opened higher at Rs 112 and touched an intra-day high of 114.20 during the day's trade.
Bank of Baroda (BoB) on Thursday reported a standalone net profit of Rs 709.87 crore for the first quarter ended June 30, 2019. The bank had posted standalone net profit of Rs 528.26 crore in June quarter of 2018 and loss of Rs 991.37 crore in March quarter of 2019.
Standalone total income of the public sector lender stood at Rs 20,860.9 crore during the quarter under review. It was Rs 12,787.71 crore during the corresponding quarter of the previous fiscal.
The state-run lender had said that results were not comparable with immediately preceding quarter and corresponding previous year as Vijaya Bank and Dena Bank had merged with it, effective from April 1, 2019.
Edited by Chitranjan Kumar